tv Bloomberg West Bloomberg January 9, 2015 1:00pm-2:01pm EST
>> from bloomberg world had court is near, i'm mark crumpton. this is a special edition of "bottom line." the two suspects in this week's massacre at the charlie hebdo magazine in paris are dead. they were killed as police stormed the building where they were held up near charles de gaulle airport. explosions were heard at a kosher grocery store in eastern paris where a gunman had taken hostages. there are reports that the gunman was neutralized. we have team coverage of this developing story. hans nichols is in paris near the site of the kosher store hostage incident.
let's begin with my colleague on the phone from a town about 20 miles northeast of paris where the charlie hebdo suspects were killed by police. good evening. what more can you tell us? >> the situation has become very calm near the airport. we have more information -- the hostage who was inside the publishing house where the two kouachi brothers were held up the hostage was hiding in a box and he was texting the police, giving some information to the police in order to prepare for this assault. the police did not come inside the building by themselves. they were trying to negotiate with the terrorists inside. around 5:00 p.m., the brothers
came outside the building and started firing at the police. 10 shots followed by two explosions. that is when the attack started on the building. the kouachi brothers have reportedly been killed. the hostage is safe. >> do we have any sense from authorities in france whether the suspects who were killed were working by themselves or part of some other operation? >> this is a concern of whether this is a more organized terrorist group than we initially thought. the gunmenan was linked to the kouachi brothers by the authorities. the kouachi knew brothers knew
him. what we know is that -- we don't know exactly when they met. we know they were at some point in their lifetime part of a group in the middle of the 2000 sending of jihad is to iraq. one of the brothers was arrested before he went to iraq. the oldest brother received some military training in yemen. the investigation and the press conference that will happen tonight at 10:30 will give us more details about the connection and how this rate happenedid happened.
>> i will ask you to stay with us. also joining us from paris is hans nichols with the other part of this story. the incident that took place at that kosher grocery store. >> in just a few minutes, we will get a briefing. everyone is gathering behind me. what we have officially is that in this rate here -- raid here five were killed. an additional four receivers the injured. two hostage takers were killed. before, we thought only one hostage taker. the total dead is five. two of them were hostage takers. three of them were hostages. for additionally were seriously injured. -- four additionally were seriously injured. moments after the blasts, we saw
several ambulances coming down. you could clearly see two attendants hovering over a body. you can see the iv drip coming down. there are several hospitals toward central paris where they could have been going to. we don't know whether or not there is an additional a compass. it was a 26-year-old female accomplice. we don't know her whereabouts are whether or not she was that second hostage taker that police have confirmed. what they did say about the second hostage taker they could not confirm the gender identity of the person. >> have we heard any word from officials about whether the attack at the grocery store and what happened earlier this week at the offices of charlie hebdo whether those two incidents are linked?
>> what we know is that the attackers, the criminals, the terrorists in both cases had at some point crossed paths in their lives. we don't know whether or not they were in operational control. the hostage taker in this situation was demanding the release of the two brothers towards charles de gaulle. that is the connection we know. >> haas nichols, i will ask you to stand by. joining us on the phone with his reaction and analysis is the appointee from george w. bush as the first assistant secretary for infrastructure protection when the u.s. department of common security was founded in 2003 -- homeland security was founded in 2003. what is your reaction to the developments of this week in
paris as relates to counterterrorism activities? not just by the french government, but by governments around the world. >> and highlights the concern that all governments have right now in the context of hackers working independently on behalf of al qaeda or isis. what that potential is. the links they purport to have proves that the concerns we do have here individuals who might have been trained abroad or cap self-described affiliation with these groups could take up arms and conduct attacks against softer targets carrying out in the philosophy of these groups, attacks against u.s. interests.
>> when you hear a story like this or see development in paris , when u.s. officials take note of this what in your experience is done to brief intelligence officials here in the u.s. to beef up security here in the united states? what would be happening right now? >> right now, from a top-down view, you have international security apparatus looking for any potential ties they have had to the nine states -- to the united states, giving indications of a broader network . they look at the tactics that have been diploid from the standpoint of tactics we are seeing -- have been deployed.
the entire intelligence apparatus which is ongoing. this incident as it relates to the nine states that united states might highlight where those at networks might be active here or the training might have been provided. there is another component, looking at how you prepare and protect against those types of attacks where you clearly have a plethora of potential targets. the magazine was clearly the target here. the magazine could have been anything else that could never presented an anti-islamic view and therefore had been targeted. one of these actors could have picked up this picked a softer
target -- take a softer target for these acts. we work closely with the private sector and local law enforcement on how to identify indicators of these types of events and how to protect themselves against it. >> we want to take a quick break. the developments today in france have been very fluid. a lot has happened. it began this week with that massacre at the offices of charlie hebdo. police now saying the two suspects who they believed carried out that attack have been killed. there was a hostage incident involving those two brothers. another hostage incident in eastern paris at a kosher grocery store. at least two of the alleged hostage takers are believed to
have been killed in that police raid. we are waiting to hear from president obama and tennessee. no doubt to tell the economic -- the jobs report -- tout the jobs report. we are expected to hear within the next hour or so from the french president. he will address his countrymen about the events of today and this week in france. stay with us. ♪
it is unclear whether or not the president is going to specifically address what happened today in paris at the top of his remarks. white house officials say he has been briefed to the minute. the white house is very aware of the cornering of the two prime suspects and the second hostage situation. they have their own officials on the ground relaying information and close ties with french intelligence. the obama administration is pledging resources. they will try and connect the dots of how this came together and whether or not there are any broader threats. >> was the u.s. role going forward in paris? >> there are a couple of things. there's the on the law enforcement side from the fbi. when you pull back, that's where the nsa and the cia will be heavily involved, trying to identify potential networks.
whether there are connections to the united states are individuals in the united states. another key thing to watch here -- eric holder believe this weekend for paris to have meetings about the issues of foreign fighters individuals who were training in syria or rock, fighting there and potentially returning to western european countries or even the united states. the estimates right now are thousands of individuals that have foreign passports are currently fighting in syria. i think that's a key long-term focus for the u.s. going forward. >> phil mattingly joining us from knoxville, tennessee, where president obama is expected to speak within the hour. let's continue our coverage of today's events. for more on the terror of the -- terror attacks i'm joined by the ust departments for several -- first ever r. when i spoke to earlier this
week, 1.2 kept hammering home was the need to try to get through to disaffected young people, whichever people -- communities they may belong and come and educate them so they won't be seduced by forces that may want them to carry out attacks like we have seen this week in paris. is that even more urgent now? >> absolutely. we are talking about a generational problem. one for the planet's muslim. that's 1.6 billion people. 66% of those under the age of 30. that is the pool from which recruiting happens. for both boys and girls. we need to be thinking more strategically and more effectively come in more disciplined and matter. we need to combat ideology of extremist and prevent young kids from being recorded. >> how you deal with those in the political world the political spectrum, we have
heard conversations this week and statements this week where people would take advantage of this and they would come in a sense, throwing red meat to their base and looking to shore up their anti-immigrants sentiments. saying this is why we should have certain restrictions on groups of people whether it be in france or other places. how do you counter that ideology ? >> what we know is over the past 13 years, you see this thing all the time by politicians. we have to get past this point. what we need to be talking about is the threat of the extremist pushing in and infiltrating the conversations that young kids are having about who they are. that is where we ought to be focusing. the piece right before i came on, you talked about what the intel community is doing in terms of sharing resources. about how different governments can do more.
the government can also do is to appeal to those outside of government, to think more creatively about how to build networks of credible voices, to build movements to push back come online and off-line. that is what we should be focusing on. this is not the moment to have conversations from a political role. this is a conversation from humanity. it is something we can eradicate. it is possible to push back against extremists. what we have failed to do is to ramp up our efforts in such a way that we are overpowering the narrative of the extremists. >> speaking of that, if you want to overpower narrative -- is the bottom line on this poverty? osama bin laden notwithstanding he came from her wealthy family. -- a very wealthy family. is poverty the link? >> i think it's a bad idea to put things in boxes. i.e., you have to be poor to do this, you have to be uneducated to do this. these are problematic as we think about the solutions.
you have to be very creative about understanding what they are doing. they are not just looking at people who are poor or uneducated or mail. they are looking at any young person that is having a crisis of identity. that is seeking to find answers. if the loudest answers are only those of the extremists that are pulling them in a particular direction, they will be pulled. what we need to do is outpace them, and to be able to counter the narratives with alternatives by credible voices. that can stop that from happening. the way poverty fits in, the only thing i will say is that when you look at the financial aspect of this how are some people in the world being radicalized in terms of money? they do that by building an ecosystem in which the bad guys are paying people to do particular things. but that's not the vast majority of techniques. the vast majority of voices by the extremists are to push upon this idea of there's only one
way to be muslim. come to us, and we will tell you how. >> the first ever special representative to muslim communities, now adjunct senior fellow at foreign relations. thank you so much. stay with us here on this special edition of "bottom line." reaction on capitol hill to the events this week in france, and also, seeing a live shot there from tennessee. president obama expected to address the gathering, the topic -- economics. we have the jobs report today. but we could hear from the president about the events in france this week. stay with us. ♪
joining me is bob was kautsky, appointed by president george w. bush as the first assistant secretary of info structure protection when these department of home and security was founded. my colleague, peter cook, is on the hill trying to get reaction from lawmakers. from alleges that in perspective, what to lawmakers in the united states need -- a legislative perspective, what to lawmakers in the notice states need to be focused on? >> i think ensuring that we have the continued authority to act and collect data, and do analysis, and follow up on any leaves them i come out of this. there is plenty of legislation currently in place that allows the intelligence community and law-enforcement community to chase down what they need. we have to keep that intact. it has been integrated. -- ben degraded.
>> when you hear discussions about a possible cut in funding for the budget of homeland security, this has been caught in the middle of the political crossfire on capitol hill. what are your thoughts on that, given what happened this week in france? >> we can't play politics and it comes to national security. another gets what's being done. the funding has to state in place -- stay in place. we often get caught up in thinking about things only when they are urgent, when a terrorist threat or attack does occur. we need sustainable program funding to allow things to continue to maintain a good level of security in the united states. irrespective of an active event going on, we shouldn't just be focused on that, we should be focused on sustainable funding for national security. >> thank you for your time and your perspective. we appreciate it. stay with it, bloomberg's special coverage of the events
>> welcome back to this special edition of "bottom line," on bloomberg television. i'm mark renton. --i'm mark crumpton. suspects in the attacks in paris killed in police raids today, ending three days of intense drama that began when a messenger -- and massacre occurred. let us get reaction from capitol hill to the latest developments in france today. our chief washington correspondent peter cook is standing by with congress and jim himes of connecticut. good afternoon. >> i am joined by congressman
himes, a member of the house select committee on intelligence. you're taken what you have seen play out today? i know you have had some briefings today. what do you know this point? >> it's gratifying that the two individuals that are front and center on the office are no longer with us. you have to give the french credit for tracking them down quickly. it is still a tense moment. there are a lot of questions that need to be answered. who was involved, it is there the possibility of follow-up attacks? that's something you don't know until you have the opportunity to look at the networks. that processes to continue. we have some indications that these guys were pretty well-trained, we expect they were trained by islamic extremists. we need to pull it apart and seawalls associated with that. >> -- see who all is associated with that. >> was the red flag this raises
for you in terms of being a u.s. lawmaker and the security threat in the united states? >> the main concern is for those people who have folks who have gone to syria to fight, and had either eu or u.s. passports. we know there are those people. this is what we worried about in terms of people going over to fight in syria, getting some skills. this looks like this could be one of those situations. we have known for a long time that something like this could happen. the syrian conflict is not like afghanistan. it's happening on your doorstep. it's not that hard to get from europe to the united states. we have a lot of coronation and thought on the part of our security forces. >> have you been briefed on whether or not these guys did this on their own? or whether they were ordered by a larger association some other group to carry out what's taking place over the last few days? >> we are piecing it together. it's very much alive case, we don't know anything definitively at this point. that's a real interest.
it has been sometime since these networks either ap or al qaeda in yemen -- it's been sometime since they have been able to pull thing off outside of their area. this will be a real subject of inquiry. >> there's a debate here about the capabilities of the u.s. intelligence community, and some proposals to rein in, for example, the ability to monitor bulk phone collection, that's one thing. how do you think france will impact the debate that takes place here is to what the cia and the intelligence community the nsa can do going forward versus what they have been able to do? >> there is no question. when we are reminded how awful terrorism can be how close they can be, that changes the weather around this discussion. i hope it doesn't change it too much. the idea that we constantly have to be sacrificing our civil liberties in favor of security -- that's an argument that gets way overblown. we have gone through that in the
discussion about the senate torture report. these don't always have to be either/or arguments. there's no question that is not just an issue of what can our security services do or not do this is going to put the discussion in the coming weeks about whether the department of homeland security should be fully funded, how it should be funded, whether it should get caught up in an ideological battle -- it will change the weather around the discussion. >> about you guys should have as soon as next week. >> more than a week ago, the idea that the part of homeland security should be used as a political football looks a lot different today than it did a week ago. >> jim himes, democrat from connecticut, and a member of the intelligence committee. we send it back to you, in new york. >> thank you both. we are standing by for president obama. the president no doubt to discuss the economy. we got that job summer today. the president should be speaking within the next 20 to 30 minutes. we are also going to stand by
and see if he has any comments on what has been going on in france. the french president, creswell along -- francois hollande will speak. we did have another major story in the u.s. today, the economy. the jobs report, more positive signs for retail. julie hyman has the retail higher numbers for us. >> good afternoon. we saw similar trends in racial hiring we saw in hiring overall. some encouraging signs that sort of backup from the numbers we have been getting from the retailers themselves. i went back and crunch the numbers on the fourth quarter going back several years. looking at retail higher income excluding auto, retail hiring, as well as gasoline station hiring. what we get of the best numbers since 2007.
in addition, during the october to december time. period, 38000 new jobs. this is all seasonally adjusted in the retail industry. the question the broader economy is how much will this job growth keep up? how many of these various employees who were hired will be retained at these retailers? we don't have any hard data on that as of yet. we have to wait for next month to see if that is confirmed. however, we do have anecdotal evidence. gary rosenberg, an economist in florida talks to a lot of staffing professionals. those people who retailers come to when they are looking for people for the holiday season. he actually describe the retail market as tight right now. that is not something you are hearing about. he said it was difficult for retailers to fill those positions with qualified people. in some cases, were having to raise their wages.
we will get the next set of retail data next wednesday from the government. >> julie hyman, thank you. for more than jobs report and an outlook on what's ahead for the economy in 2015, i'm joined by michelle girard, the chief u.s. economist at rbs securities. she is in stamford connecticut. welcome back to "bottom line." is this recovery starting to gain momentum? >> i think it has been gaining momentum. the middle of the year in 2014 was a really important turning point. it's not as important as the weather rebound, but as we move past all the noise, the underlying strength of the economy particularly the consumer sector, released under to show itself. we ended the year with a lot of good momentum, and i think unlike prior years, when that all sort of faded in the early part of the following year i
think this underlying strength is going to be sustained. i think 2015 is going to continue to see fairly solid growth, better than we have seen in recent years. >> the dark cloud hanging over the december jobs report is wages. average hourly wages fell five cents last month. why is it which growth in the united states gaining any traction? >> i agree with what the prior report noted -- labor markets are relatively tight. talking to gearing rosenberger seeing his research, his findings have been that companies have been raising wages. and yet, isn't showing up at the numbers. this morning, we saw a going the other direction. i think it's puzzling, and it's very bad for the federal reserve. they are making good progress towards the employment mandate. i think the growth side justifies moving policy beginning to normalize things a bit.
on the inflation front, they're not making the progress they need to. that conflict is their decision very much about when to actually begin hiking interest rates. >> in a note today, you wrote the fed continues to make good progress on one mandate -- unemployment, and miss on another -- inflation. is this because of that strategy , or external forces? >> is extremely puzzling. i don't necessarily think that declining unemployment leads to higher inflation. the economy has shown enough strength, and enough improvement in the last year or so that i would have thought we would be seeing firmer wages and firmer inflation. in fact, we are not seeing any evidence of that. it is very puzzling -- whether it's because in a global world there's so much capacity on the labor front that we are not seeing it -- the strong dollar, obviously more recently has been
a factor. i have to say, it is confusing to me, given the easy pastor of the fed, and the strength of u.s. economy, that we have not seen more price pressure. >> the atlanta fed president dennis lockhart said today that the december jobs report is no reason to speed up the timing of an interest rate increase. do you agree? >> yes. i think the case for moving policy away from these emergency level rates has been there. when you look at the economy growing to 2.5% in the last three years, the very least, showing good momentum throughout 2014. on the growth side, all of the requirements and prerequisites have been met, but the fed is very hesitant with no inflation. it concerns that inflation may lower to take that step. i think because the earnings numbers in particular, i can understand how he feels like
this is arguing for more patients on the hiking rates. >> michelle joining us from stamford, connecticut. always a pleasure. we are still standing by for president obama. he is in knoxville, tennessee. the president has been on a campaign style to her touting his economics reforms and the progress that has been made probably one of the things you will focus on today, what michelle and i were just talking about, that december jobs number, showing some strength albeit with low wage growth. we are also expecting to hear from the french president francois hollande, in regards to the hostagetaking in terrorist attacks. stay with us, "bottom line," continues. ♪
>> welcome back to "bottom line." we are standing by for president obama to speak in tennessee. phil mattingly is traveling with him, and phil has some developments. >> we just got word from eric scholz, the printable w press secretary for the white house, the president has now been briefed on the latest events in paris from his top counterterrorism and homeland security advisers. what that means is the end result of the two sieges we saw over the last couple of hours, the french assault to take out both situations with the two brothers as well as the deaths of four hostages we heard about. the president is fully apprised him of the getting it through his top national security advisor, in particular in monaco a few moments ago. >> peter cook was just
interviewing commerce min jim himes, the democrat from connecticut on capitol hill. he mentioned this debate that has been going on on capitol hill, where republicans now in control of both the u.s. house of representatives and united states senate. there has been some debate about maybe holding back or cutting funding to the department of homeland security. the congressman saying in light of this week's events in france that's probably not a wise thing to do. have you heard anything about any negotiations about the department of homeland security budget? and how that relates to president obama wanted to take executive action on immigration? >> the white house is watching what's going on in the house very closely. there is a lot of concern obviously, they put the string income of the department of homeland security's funding will run out in february. it was a mechanism for
republicans to cut back on the immigration executive action. i've also heard this from republicans, peter king republican from new york obviously, a very senior member when it comes to homeland security issues has already come out and said gain -- games can be -- cannot be played with dhs funding. no one wants to make this into a political issue in terms of what happens in paris. i do think the white house will be going to both parties on capitol hill, lawmakers on either side, and saying this is an agency that is 100% responsible for protecting us in a domestic cents. you cannot defund it or hold a funding hostage. as peter noted, this is something the white house is watching closely. you will have to pay a lot of attention to this in the weeks ahead. >> we are seeing vice president biden they're taking the stage, no doubt introduce the president of the united states in knoxville, tennessee. let's get back to this topic of
funding for the department of homeland security. given the atmosphere we've seen of the last couple of years between congress and the white house, and given the fact that the president is, for lack of a better phrase, in his lame-duck stretch as president, can we expect there to be any cooperation regarding the funding? >> when you talk to republican leadership aides, there's no desire to restrict the funding for the department of homeland security. they recognize that is not politically palatable. there is also recognition among senior republicans that they need to do something. they at least need to show some type of action in trying to counter with the president did on immigration. i think there's really going to be a fight over the last couple of ash the next couple of months. house republicans are moving fast. the big question is with senate republicans in control of that chamber, how they react to what
their house counterparts send over. the white house watching very closely, trying to get a good sense of what each side is trying to do. >> phil mattingly joining us from knoxville, tennessee, where president obama is scheduled to speak in just a few moments. the president will be discussing the events in france this week also, talking about community colleges in the u.s. economy. stay with us, "bottom line," continues in a moment. ♪
>> welcome back to "bottom line." you are looking at francois hollande speaking to his country after a tragic and trying week in france. the president saying that four hostages were killed. four hostages dead in paris when that kosher grocery store in eastern part of the city, when two suspected terrorists when inside the store and took people hostage. at least one of the terrorists
we are hearing was killed by authorities today. authorities in paris say one of the brothers killed out the massacre of a satirical newspaper. they were killed by police today. police had been looking for these men by the past couple of days. reportedly they had taken a hostages well. the hostage was uninjured. the friends -- the french president speaking to his country live from paris today. let's go back to knoxville tennessee. phil mattingly is standing by. the president of the united states, due to address the gathering in knoxville in knoxville at any moment. the vice president is at the podium. as we continue to follow the events in paris today, members of the house and quite -- senate intelligence committee will no doubt be discussing what is to be done united states to remain
vigilant. are we getting any sense from the new chair of the senate homeland committee -- homeland security committee about what measures might be taken? >> is still early for that. one interesting element to keep an eye on is in the wake of the leaks from edward snowden there has been a move on capitol hill in both chambers to consider legislation to ratchet back the national security agency. that effort fell short of the end of last congress. one thing that often occurs in the wake of attacks like this and they wake of terrorism like this is the security pendulum swinging away from the privacy area, and more towards national security. that type of legislation might come up, it might be put to the side. that will be adjusting to watch. >> before we let you go, let's
get to why the president is in knoxville, tennessee. will he be discussing committed to colleges? -- community colleges? >> one of the big proposals the white house has been telling us about is two years of commodity college will be paid for for any individual for any individual maintaining a 2.5 gpa. the white house says it could apply if each state participates to about 9 million people. it will save about $3800 per person. it's not cheap, it's about $60 billion the white house is estimating right now. state authorities 25%, republicans wary of that price tag. in tennessee, they have already implement a that program of the state level. even tennessee's they lawmakers
have said maybe this isn't something the federal government should be doing. lawmakers will have to act on this, it will have a long road ahead if it was to be put into place. >> phil mattingly joining us from knoxville, tennessee. a very busy friday in france today. let's recap what happened. suspects of the two terror attacks in paris this week -- one of them took place today at a kosher grocery store in the eastern part of the city. the other of course taking place at the offices of the magazine. suspects were killed in twin police raised today, that ended three days of intense drama and a nationwide shortcut -- the prince president francois hollande speaking a few moments ago, he said for the hostages of the grocery store in paris were among those who were killed. stay with bloomberg television for continuing coverage of the
>> live from pier 3 in san francisco, welcome to "bloomberg west," where we cover innovation, technology, and the future of business. i'm cory johnson. here's a check of the bloomberg top headlines. the united states has 250 2000 jobs in december, capping the best year for job growth since 1999. the unemployment rate fell to 5.6%, the lowest since 2008. and still, wages were problem, posting another unexpected decline. here's the columnist. >> this is a strong labor report. the cap the strong year.